BILL NUMBER: SB 827	CHAPTERED  10/10/99

	CHAPTER   816
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 8, 1999
	PASSED THE SENATE   SEPTEMBER 1, 1999
	PASSED THE ASSEMBLY   AUGUST 31, 1999
	AMENDED IN ASSEMBLY   AUGUST 23, 1999
	AMENDED IN ASSEMBLY   AUGUST 16, 1999

INTRODUCED BY   Senator Sher

                        FEBRUARY 25, 1999

   An act to amend Sections 12162, 12205, 12305.5, and 12310 of the
Public Contract Code, and to amend Section 42701 of the Public
Resources Code, relating to recycling.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 827, Sher.  Recycled materials.
   (1) The State Assistance for Recycling Markets Act of 1989
requires the Department of General Services to set a goal for the
purchase of recycled paper products by state agencies of at least 50%
of paper products purchased.  All state agencies are required to
submit to the department and the California Integrated Waste
Management Board a plan to meet this goal.  The board was required to
implement a pilot program, if adequate funds were available, from
January 1, 1994, to January 1, 1997, for funding claims submitted by
state agencies for providing price preferences to certain recycled
paper products.  The act also requires the Legislature and all state
agencies to meet certain goals for the procurement or purchase of
recycled products, as defined, by specified dates.  The board is also
authorized to establish recycled-content disclosure, recycled
product-only bids, cooperative purchasing arrangements, or conduct an
analysis of solid waste diversion from disposal facilities, to meet
the goals for recycled products.  Existing law requires the
Legislature, if a recycled product costs more than the same product
made with virgin material, to purchase fewer of those more costly
products or apply cost savings, if any, gained from buying other
recycled products towards the purchase of those more costly products.

   These provisions would be repealed, under existing law, on January
1, 2001.
   This bill would provide that purchasing recycled products is a
requirement rather than a goal, and would delete the requirement that
state agencies submit plans related to their recycled paper product
purchasing.  The bill would also delete the provisions regarding the
pilot program.
   The bill would delete the repeal of those provisions, would make
conforming changes, and would delete obsolete provisions.
   (2)  Existing law requires the State Procurement Officer, in
purchasing any materials to be used in paving or paving subbase for
use by the Department of Transportation and any other state agency
that provides road construction and repair services, to make
contracts available for items that utilize recycled materials in
paving materials and base, subbase, and previous backfill material,
if the price of those items is competitive for the purposes intended.

   This bill, instead, would require the officer to make those
contracts available unless the Director of Transportation determines
that the use of the materials is not cost-effective based on
specified factors.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 12162 of the Public Contract Code is amended to
read:
   12162.  (a) At least 50 percent of the total dollar amount of
paper products purchased or procured shall be a recycled paper
product, as defined in Section 12161.  In addition, at least 25
percent of the total fine writing and printing paper purchased or
procured shall be a recycled paper product, as defined in Section
12161.
   (b) All state agencies shall report to the department and to the
board on their progress in meeting the requirements of subdivision
(a) and Section 12205.  The department shall develop a uniform
reporting procedure which state agencies shall follow.  If at any
time a  requirement has not been met, the department, in consultation
with the board, shall review procurement policies and shall make
recommendations for immediate revisions to ensure that the
requirement is met.  The department, in consultation with the board,
shall present its recommendations on these procurement policies to
the Legislature in the department's annual report pursuant to Section
12225.
   (c) (1) All state agencies shall give a price preference, not to
exceed 10 percent, to recycled paper products, if the product's
fitness, quality, and availability are comparable to nonrecycled
products.  The board, in consultation with the department, shall
establish, on or before May 1, 1994, and every two years thereafter,
price preferences for the purposes of meeting the goals set forth in
this section and Section 12205 for recycled products.  For those
priority commodities, as defined by the board, the price preference
established by the board shall not be less than 5 percent.  The board
shall publish the established price preferences annually in the
board's report to the Legislature pursuant to Section 40507 of the
Public Resources Code.
   (2) In establishing the price preferences, the board shall take
into consideration all of the following factors:
   (A) Materials that comprise the largest percentage of the state's
solid waste stream.
   (B) Materials that have the highest percentage of postconsumer
material.
   (C) Materials that require expanded markets.
   (D) Any other market factors as determined by the board.
   (3) The combined dollar amount of preference granted pursuant to
this section and any other provision of law shall not exceed one
hundred thousand dollars ($100,000).
   (d) Notwithstanding paragraph (1) of subdivision (c), the recycled
paper bidder preference shall not exceed fifty thousand dollars
($50,000) if a preference exceeding that amount would preclude an
award to a small business that offers nonrecycled paper products and
is qualified in accordance with Section 14838 of the Government Code.

  SEC. 2.  Section 12205 of the Public Contract Code is amended to
read:
   12205.  (a) All state agencies shall require all contractors to
certify in writing the minimum percentage, if not the exact
percentage, of postconsumer and secondary material in the materials,
goods, or services provided or used.  This certification shall be
furnished under penalty of perjury.
   (b) The department, in consultation with the board, shall review
and revise the procurement specifications used by state agencies in
order to eliminate restrictive specifications and discrimination
against the procurement or purchase of recycled products.  Fitness
and quality being equal, all state agencies shall purchase recycled
products instead of nonrecycled products whenever recycled products
are available at the same total cost as nonrecycled products.  All
state agencies shall allow a price preference as determined by the
board pursuant to Section 12162.  In determining procurement
specifications, with the exception of any specifications that have
been established to preserve the public health and safety, all state
procurement and purchasing specifications shall be established in a
manner that results in the maximum state procurement and purchase of
recycled products.
   (c) (1) To assist the state in meeting the requirements of
subdivision (a) of Section 12162 and subdivision (e) of this section,
the department, in consultation with the board, may also establish
recycled-content disclosure, recycled product-only bids, cooperative
purchasing arrangements, or conduct an analysis of solid waste
diversion from disposal facilities, to meet the requirements for
recycled products and to encourage the maximum state procurement and
purchase of recycled products.  All state agencies shall, if
feasible, implement recycled product-only bids for recycled products
as defined in subdivision (a) of Section 12200, in order to meet the
requirements for recycled products set forth in this section and
Section 12162.
   (2) This subdivision applies to the procurement or purchase of the
following materials, goods, and supplies, or products containing the
following recycled resources:
   (A) Paper products, which include, but are not limited to, fine
papers, such as xerographic and envelope papers and form bond,
corrugated boxes, newsprint, tissue, and toweling.
   (B) Compost and cocompost products.
   (C) Glass.
   (D) Oil.
   (E) Plastic.
   (F) Solvents and paint, including water-based paint.
   (G) Tires.
   (H) Steel.
   (d) All state agencies shall, if feasible, establish purchasing
practices that ensure the purchase of materials, goods, and supplies
that may be recycled or reused when discarded.
   (e) The department shall set the following requirements for
purchases made by state agencies:
   (1) By January 1, 1996, at least 20 percent of state purchases are
of recycled products.
   (2) By January 1, 1998, at least 30 percent of state purchases are
of recycled products.
   (3) On and after January 1, 2000, at least 50 percent of state
purchases are of recycled products.
   (4) The requirements specified in this subdivision shall be
applied to the purchases of state agencies for products listed in
this section, except in subparagraph (A) of paragraph (2) of
subdivision (c) for which requirements are specified in Section
12162.
   (f) The purchases of the state agencies shall meet each
requirement for, and be applied to the total dollar amount of, each
specified product category as defined in this section.  The purchase
of a recycled-content product from one category may not be applied
toward the requirements for, or the total dollar amount of, any other
category listed in this section or Section 12157, 12162, 12301, or
12305.
  SEC. 3.  Section 12305.5 of the Public Contract Code is amended to
read:
   12305.5.  If a recycled product costs more than the same product
made with virgin material, the Legislature shall purchase fewer of
those more costly products or apply cost savings, if any, gained from
buying other recycled products towards the purchase of those more
costly products.
  SEC. 4.  Section 12310 of the Public Contract Code is amended to
read:
   12310.  (a) On and after January 1, 1997, at least 50 percent of
the total dollar amount of paper products purchased or procured by
the Legislature shall be purchased as a recycled paper product, as
defined in Section 12301.  In addition, at least 25 percent of the
total fine writing and printing paper purchased by the Legislature
shall be recycled paper products, as defined in Section 12301.
   If at any time the requirement for recycled products has not been
met, the Legislature and the department, in consultation with the
board, shall review the procurement policies of the Legislature and
shall make recommendations for immediate revisions to ensure that
each requirement is met.  Revisions include, but are not limited to,
raising the purchasing preference and altering the requirements for
each or all recycled products.  The department, in consultation with
the board, shall present its conclusions and recommendations on these
revisions of procurement policies to the Legislature in the
department's biennial report pursuant to Section 12225.
   (b) When contracting with the Legislature for the sale of recycled
paper products, the contractor shall certify in writing to the
contracting officer or his or her representative, that the recycled
paper products offered contain the minimum percentage of waste
materials required by subdivision (c) of Section 12301.  The
contractor shall specify the minimum, if not the exact, percentage of
recycled product in the paper product, including both the secondary
and postconsumer material content.  This certification shall be
furnished under penalty of perjury.
   (c) The Legislature may, in consultation with the board, print a
symbol on paper products selected by the Legislature.  The symbol
shall be similar to the following:
   Printed on recycled paper.  This symbol shall be printed only on
paper products meeting the definition of recycled paper products in
Section 12301.
   (d) This section shall not prevent the Legislature from using
existing stocks of paper products.
  SEC. 5.  Section 42701 of the Public Resources Code is amended to
read:
   42701.  (a) In purchasing any materials to be used in paving or
paving subbase for use by the Department of Transportation and any
other state agencies that provide road construction and repair
services, the State Procurement Officer shall make contracts
available for those items that utilize recycled materials in paving
materials and base, subbase, and pervious backfill materials, unless
the Director of Transportation determines that the use of the
materials is not  cost-effective.  In determining the
cost-effectiveness of the materials subject to this section, the
factors that the director shall consider include the following:
   (1) The lifespan and durability of the pavement containing the
materials.
   (2) The maintenance cost of the pavement containing the materials.

   (b) This section also applies to any person who contracts with the
Department of General Services or with any other state agency to
provide these construction and repair services.
   (c) The recycled materials shall include, but are not limited to,
recycled asphalt, crushed concrete subbase, foundry slag, and paving
materials utilizing crumb rubber from automobile tires, ash, and
glass and glassy aggregates.  The specifications shall be based on
the standards of the Department of Transportation for recycled paving
materials and for recycled base, subbase, and pervious backfill
materials.
